THE UK Government has been called upon to deliver a manifesto promise that would aid small businesses in Scotland after it was revealed four in five smaller firms north of the Border contribute to their community or give to charity.
The Small Businesses (FSB) research examined the contribution of smaller companies to both local jobs markets and to the success of their neighbourhoods.
As a result of the findings, FSB is calling on the UK Government to deliver on its manifesto pledge of a one-year National Insurance Contributions (NICs) holiday for businesses that employ those from disadvantaged groups.
The survey results show that 82% of Scottish smaller firms had contributed to local causes in the last three years, in comparison to 80% across the UK as a whole. One third of Scottish companies (33%) have used the skills of their enterprise to help their local community, such as a local restaurant giving free cookery classes to low income families.
Two fifths (39%) of Scottish FSB members have donated their time to local communities, such as running local clubs or organising events.
Andrew McRae, FSB’s Scotland policy chair, said: “Anyone with their finger on the pulse of their community knows that smaller businesses play a pivotal role. Our new research found that local firms are punching well above their weight.
“This new report underlines why it is important that policy-makers give smaller firms the best chance of success. That’s why we’ve made the case for rates help for the smallest Scottish operators and for them to get a fair share of public contracts.”
“Our research shows that smaller firms already take on huge numbers of people that face labour market challenges. We’re making the case for a little extra help so that they can achieve even more.”
The report found small employers are more likely to hire workers who are elderly, disabled or with low levels of educational attainment. The vast majority (78%) employ an older worker, a third (34%) have a member of staff with low levels of educational attainment, and a similar share (30%) employ at least one person with a known disability or mental health condition.
Commenting, FSB UK chairman Mike Cherry said: “Those who are disadvantaged are already more likely to find work with a small firm than a big corporation. Back in 2017, the Conservatives promised that – were they elected – they would introduce a one-year NICs holiday for firms that take on those with a disability, mental health condition or who have been out of work for some time.
“We’ve been left asking: when will this promise be delivered?”
“Two years later, it should be prioritised. We look forward to the Chancellor outlining exactly how the commitment will be taken forward in the upcoming spring statement. With the labour market tightening, EU migration down and skills shortages starting to bite, it’s more vital than ever that this incentive is made available.”
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